Date: 07/01/2010

Powerchip Semiconductor December 2009 revenues up by 3%

Powerchip Semiconductor has announced its unaudited net sales of 5.515 billion NT dollars for December 2009, representing a month on month growth of 3% also representing a new monthly high for 2009. PSC, single-handedly, following continuous losses for ten quarters, returned to quarterly profitability.

PSC Vice President and Spokesperson Mr. Eric Tang stated that downstream channel demand has improved, commodity DRAM pricing has remained stable, resulting in last months monthly sales number growth. Sales revenue for the whole year reached 31.17 Billion NTD. As a result of stable DRAM pricing together with outstanding 65nm yields and smooth shipments, the company already has continuously generated profits for the last two months. Even after a historically long period of losses for ten quarters, PSC was able to return to its first quarter of profitability, where operating profit and depreciation generated considerable cash inflow and thus noticeably improving PSC financial structure.

Eric Tang further stated, that last month PSC's 1Gb DDR3 DRAM output already exceeded 15 million chips, as a result of ample command of production and product maturity, PSC's DDR3 product line is ready to make up the majority of shipments during the 1Q 2010. PSC estimates that in March, monthly DDR3 shipments will exceed 75%, thus taking advantage of customers rapid growing demand for DDR3 DRAM and thus strengthening PSC's profit source.